Flogging a dead horse?

Despite being a Premier Grand Cru Classe A, Cheval Blanc’s recent
vintages are failing to rise in price. As shown above, prices for the LVMH-owned
brand have actually fallen since the wines were first released – in some cases
by a fifth.

The problem is not the quality. The 2010 is a double
100-point wine (receiving top marks from both Parker and Suckling), but has
dropped almost 8% in price since its release. Cheval Blanc’s mistake has been
to price its wines too high. As shown above, the 2006 was released at almost
the same price as the 2005, despite being an ‘off’ vintage. Since that release,
buyers have lost money on Cheval Blanc, which has done considerable damage to
the brand.

But is it time to
take another look at Cheval? The 2005 looks interesting (see chart below). It has
dropped back to £4,300 per 12×75: the same price for which it was released
seven years ago. For a high quality vintage and a great wine, this might just
be the level at which the market is tempted.

This blog is provided for informational purposes only and does not amount to financial advice or advice as to the value or likely future values of any of the wines it discusses. The opinions expressed are subject to change without notice. Neither Liv-ex Ltd nor any of the authors or editors accept any liability for the accuracy of its contents.